Traditional Carriers

The advent of low-cost carriers have changed the travelling landscape and these “no-frills” airlines have garnered a lot of support. This has prompted some traditional carriers to lower their fares to compete more effectively on price, or launch low-cost subsidiaries of their own. Low-cost airlines have contributed enormously to the growth in the number of air travellers.

Traditional carriers are usually a lot older and have been active in the market for a long time. They offer reassurance of a strong, dependable brand to passengers, good service and in-flight meals included in the airfare. Their aircraft are often newer and quieter and they may cover more routes. However, experience in countries like the UK has shown that the growth of their passenger numbers is flat; new growth is taken up by low-cost airlines.

Traditional carriers tend to be strong on competitive advantage, because they had been in the market for a long time and have many brand loyal customers. They have also benefited from operating efficiencies by dint of their normally large size. Travel agencies also tend to be more biased toward traditional carriers due to larger commissions earned on these airfares, and because many travel agents are owned by traditional carriers, and endorse their owner’s products.

In some cases, low-cost airlines in countries like the USA have been acquired by traditional carriers and the latter’s development of computer reservation systems at travel agencies have tended to hide or obscure the advantages of low-cost airlines. However, informed travellers shop around for airline tickets and a quick look at each of the major airlines’ websites will soon put the prices in perspective.